shl Doc 638 Filed 11/19/12 Entered 11/19/12 16:07:00 Main Document Pg 1 of 38 : :

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1 Pg 1 of 38 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK x In re ARCAPITA BANK B.S.C.(c), et al., Debtors x Chapter 11 Case No (SHL) Jointly Administered COVER SHEET FOR FIRST INTERIM APPLICATION OF ERNST & YOUNG FOR COMPENSATION AND REIMBURSEMENT OF EXPENSES AS AUDITOR TO THE DEBTORS AND DEBTORS-IN-POSSESSION FOR THE PERIOD FROM MARCH 19, 2012 THROUGH OCTOBER 31, 2012 Name of Applicant Authorized to Provide Professional Services to Date of Retention Orders Ernst & Young the above-captioned debtors and debtors-inpossession July 11, 2012 and August 6, 2012, nunc pro tunc to March 19, 2012 Period for which compensation and reimbursement are sought March 19, 2012 through October 31, 2012 Amount of Compensation sought as actual, reasonable, and necessary BD 267,500, 1 which is approximately $708,875 Amount of Expense Reimbursement sought as actual, reasonable, and necessary BD 0 Currency in Which Applicant Would be Paid Bahraini Dinars This is a(n) monthly _x interim final application 1 BD stands for Bahraini Dinars. An estimate of the equivalent U.S. dollar amounts, converted from Bahraini Dinars at the rate of BD 1 = $2.65, is set forth in this statement for illustrative purposes only. Ernst & Young is billing for its work in (and expects to be paid in) Bahraini Dinars, rather than U.S. Dollars.

2 Pg 2 of 38 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK x In re ARCAPITA BANK B.S.C.(c), et al., Debtors x Chapter 11 Case No (SHL) Jointly Administered FIRST INTERIM APPLICATION OF ERNST & YOUNG FOR COMPENSATION AND REIMBURSEMENT OF EXPENSES AS AUDITOR TO THE DEBTORS AND DEBTORS-IN-POSSESSION FOR THE PERIOD FROM MARCH 19, 2012 THROUGH OCTOBER 31, 2012 Pursuant to sections 328 and 331 of title 11 of the United States Code (the Bankruptcy Code ), Rule 2016 of the Federal Rules of Bankruptcy Procedure (the Bankruptcy Rules ), and the Order Granting Debtors Motion for Order Establishing Procedures for Interim Compensation and Reimbursement of Expenses for Professionals and Committee Members (Docket No. 159) (the Interim Compensation Order ), Ernst & Young ( EY Bahrain ) hereby files and serves this interim fee application (this Application ). By this Application, EY Bahrain respectfully requests (a) allowance of BD 267,500 (which is approximately $708,875) 1 as compensation, and (b) allowance and payment of BD 0 for reimbursement of actual and necessary expenses, all for the period from March 19, 2012 through and including October 31, 2012 (the Compensation Period ). In support of this Application, EY Bahrain respectfully represents as follows 1 BD stands for Bahraini Dinars. An estimate of the equivalent U.S. dollar amounts, converted from Bahraini Dinars at the rate of BD 1 = $2.65, is set forth in this statement for illustrative purposes only. Ernst & Young is billing for its work in (and expects to be paid in) Bahraini Dinars, rather than U.S. Dollars.

3 Pg 3 of 38 Background 1. On March 19, 2012 (the Petition Date ), each of the above captioned debtors (the Debtors ), other than Falcon Gas Storage Company, Inc., commenced the above-captioned chapter 11 cases. On April 30, 2012, Falcon Gas Storage Company, Inc. commenced its chapter 11 case. The Debtors are operating their businesses and managing their properties as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. 2. EY Bahrain was retained to provide various audit and other assurance related services to the Debtors, nunc pro tunc to the Petition Date, by orders dated July 11, 2012 and August 6, 2012, respectively (the Retention Orders ). The Retention Orders provide that all compensation, reimbursement of expenses and indemnification payable to EY Bahrain would be subject to review only pursuant to the standards set forth in section 328(a) of the Bankruptcy Code and shall not be subject to the standard of review set forth in section 330 of the Bankruptcy Code (except for the U.S. Trustee). The Retention Orders further provide that EY Bahrain would be required only to submit summary time records in one-half hour increments and a calculation of the total fees requested for its work in accordance with the comments made on the record during the June 26, 2012 hearing on EY Bahrain s retention with respect to the period preceding July 1, 2012, and that EY Bahrain would not be required to maintain detailed time records, to provide or conform to a schedule of hourly rates for its professionals, or to maintain or submit time records on a project category basis. Compensation Requested 3. During the Compensation Period, EY Bahrain performed the types of services set forth below. Also set forth below are the total fees incurred for each such type of service. For the Compensation Period, EY Bahrain spent approximately 4,547 hours providing services to the 2

4 Pg 4 of 38 Debtors. The blended hourly rate for work performed during the Compensation Period is BD (approximately $155.90). Attached hereto as Exhibit A-1 is the daily time information for each EY Bahrain professional from July 1, 2012 through October 31, Attached hereto as Exhibit A-2 are pages from EY Bahrain s first monthly fee statement filed on August 9, 2012 (Docket No. 379), describing the work performed and the estimated number of hours worked during the period from March 19, 2012 through June 30, A. ESOP SPV Audit. BD 4,500 (approximately $11,925) of fees incurred during the Compensation Period. During the Compensation Period, EY Bahrain performed audit procedures with respect to certain financial statements of special purpose vehicles (SPVs) established for the Debtors employee stock purchase plans for the years ended December 31, 2004 to December 31, Specifically, during the Compensation Period, EY performed the following work related thereto Planning procedures under EY Global Audit Methodology; planning discussions with the client regarding understanding of financial statements close process; review of templates of the financial statements of the SPVs. Approximate Number of Hours Spent Providing These Services During the Compensation Period 166 B. NRA Limited and Arcapita Incentive Plan Limited SPV Audits. BD 7,000 (approximately $18,550) of fees incurred during the Compensation Period. During the Compensation Period, EY Bahrain performed audit procedures with respect to certain financial statements of NRA Limited and the Arcapita Incentive Plan for the years ended December 31, 1998 through December 31, Specifically, during the Compensation Period, EY performed the following work related thereto Planning procedures under EY Global Audit Methodology; discussions with the client regarding understanding of financial statements close process; review of templates of the financial statements of the SPVs for the years ended 2003, 2004, 2005, 2007, 2008, 2009 and 2010; execution of audit procedures over amounts and disclosures in the financial statements, review by senior team members of the audit work and core planning and conclusion documents; discussions and amendments in financial statements subsequent to reviews by senior team members; and finalization and issuance of draft financial statements. Approximate Number of Hours Spent Providing These Services During the Compensation Period 280 3

5 Pg 5 of 38 C. Audit of Special Purpose Financial Statements of SPVs. BD 8,250 (approximately $21,862.50) of fees incurred during the Compensation Period. During the Compensation Period, EY Bahrain performed audit procedures with respect to certain special purpose financial statements of the Debtors SPVs that were established for the purpose of raising or flowing investment capital. Specifically, during the Compensation Period, EY performed the following work related thereto Audit of the financial statements of - QRE Investments WLL for the year ended 31 December 2011; - AHQ Holding Company WLL for the year ended 31 December 2010; - AHQ Holding Company WLL for the year ended 31 December 2011; - Prologis Bahrain Holding Company WLL for the year ended 31 December 2011; - ME Ventures I WLL for the year 31 December 2011; - ME Ventures II WLL for the year ended 31 December 2011; - Makhazen Gulf Holding WLL for the year ended 31 December 2011; - Makhazen Gulf 2 Enterprises WLL for the year ended 31 December 2011; and - ARC Bahrain Acquisition WLL for the year ended 31 December 2011; - ABD Acquisitions I WLL for the period ended 31 December 2011; - ABD Acquisitions II WLL for the period ended 31 December Planning procedures under EY Global Audit Methodology; Discussions with the client regarding understanding of financial statements close process; Review of templates of the financial statements of the entities mentioned above; Execution of audit procedures over amounts and disclosures in the financial statements, Review by senior team members of the audit work and core planning and conclusion documents; Discussions and amendments in financial statements subsequent to reviews by senior team members; and finalization and issuance of draft financial statements. Approximate Number of Hours Spent Providing These Services During the Compensation Period 277 4

6 Pg 6 of 38 D. Audit of the Debtors Consolidated Financial Statements. BD 240,000 (approximately $636,000) of fees incurred during the Compensation Period. During the Compensation Period, EY Bahrain performed audit and review procedures with respect to the following financial statements - Interim condensed consolidated financial statements for the half year ended 31 December 2011; - Interim condensed consolidated financial statements for the nine months ended 31 March 2012; and - Consolidated financial statements for the year ended 30 June Specifically, during the Compensation Period, EY performed the following work related thereto Understanding the service requirements, determining the scope and establishing the team; completion of preliminary engagement activities; understanding and documentation of business; determining the need to specialized skills on the audit; understanding and documenting the entity level controls as well as risk of material misstatements due to fraud; determination of planning materiality for audit; identification of significant accounts, disclosures and relevant assertions; holding team planning event meetings; identification, understanding and documentation of significant classes of transactions and related IT applications; understanding and documentation of financial statement close process; understanding and evaluating the IT general controls; designing and executing tests of IT general controls; documentation of controls and selection for testing; performance of combined risk assessment; designing of tests of controls, designing of tests of journal entries; designing of substantive procedures; planning for general audit procedures; work on audit strategy memorandum, performance of tests of controls; performance of substantive procedures; performance of general audit procedures; Execution of tests of journal entries; various internal discussions and meetings regarding impact of Chapter 11 filing on the financial statements of the Debtors; various discussion and meetings with the Debtors management regarding financial reporting impacts subsequent to Chapter 11 filing. Approximate Number of Hours Spent Providing These Services During the Compensation Period 3,683 E. Consolidated Prudential Information Report for Islamic Banks. BD 5,000 (approximately $13,250) of fees incurred during the Compensation Period. During the Compensation Period, EY Bahrain performed agreed upon procedures as detailed in its engagement letter dated 22 September

7 Pg 7 of 38 Number of Hours Spent Providing These Services During the Compensation Period 96 F. Public Disclosure Regulations. BD 2,750 (approximately $7,287.50) of fees incurred during the Compensation Period. During the Compensation Period, EY Bahrain performed agreed upon procedures as detailed in its engagement letter dated 25 January Approximate Number of Hours Spent Providing These Services During the Compensation Period 45 Compensation Paid And Its Source 4. All services for which compensation is requested by EY Bahrain were performed for or on behalf of the Debtors. 5. EY Bahrain has received no payment and no promises for payment from any source other than the Debtors for services rendered or to be rendered by EY Bahrain. To the extent required by section 504 of the Bankruptcy Code, there is no agreement or understanding between EY Bahrain and any other person other than its partners and employees for the sharing of compensation to be received for services rendered in these cases. Legal Standards 6. Section 330(a)(1) of the Bankruptcy Code provides, in relevant part, as follows (a) (1) After notice to the parties in interest and the United States Trustee and a hearing, and subject to sections 326, 328, and 329, the court may award to a professional person employed under section 327 or 1103 (A) reasonable compensation for actual, necessary services rendered by the trustee, examiner, ombudsman, professional person, or attorney and by any paraprofessional person employed by any such person; and (B) reimbursement for actual, necessary expenses. 7. Section 330 of the Bankruptcy Code prescribes the general standards for determining the reasonableness of the amount of compensation sought by a professional. See 3 Collier on Bankruptcy, at (15th ed. Rev. 1999). Congress enacted section 330 of the Bankruptcy Code to liberalize the practice of granting the allowance of compensation to 6

8 Pg 8 of 38 professionals in bankruptcy cases in order to ensure that professionals be reasonably compensated and that future professionals not be deterred from taking bankruptcy cases due to a failure to pay adequate compensation. See In re Ames Dep t Stores, Inc., 76 F.3d 66, 72 (2d Cir. 1996) (quoting In re UNR Indus., Inc., 986 F.2d 207, (7th Cir. 1993)). 8. Section 330(a) of the Bankruptcy Code provides for the compensation of reasonable and necessary services rendered by professionals based on the time, the nature, the extent and the value of such services, and the cost of comparable services other than in a case under the Bankruptcy Code. See 11 U.S.C The test for determining necessity is objective; focusing on what services a reasonable professional would have performed under the same circumstances. In re Angelika Films 57th, Inc., 227 B.R. 29, 42 (Bankr. S.D.N.Y. 1998). This test does not rely on hindsight to determine the ultimate success or failure of the professional s actions. See id.; In re Keene Corp., 205 B.R. 690, 696 (Bankr. S.D.N.Y. 1997).. Ultimately, if the services of a professional are reasonably likely to benefit the debtor s estate, they should be compensable. See Angelika Films, 227 B.R. at EY Bahrain respectfully submits that the compensation sought in this Application is necessary and reasonable. The services that EY Bahrain has rendered for the Debtors during the Compensation Period require a high degree of professional competence, and EY Bahrain was required to expend substantial time and effort in providing those services. At all times during the Compensation Period, EY Bahrain performed efficiently, effectively and economically, and the results obtained to date have benefited the Debtors, their estates and creditors. 10. By this Application, EY Bahrain seeks compensation at rates which are comparable to those charged by professional services firms of a similar size and experience. 7

9 Pg 9 of The request herein for allowance of compensation and reimbursement of expenses are without prejudice to EY Bahrain s right to seek additional compensation for services performed and expenses incurred during the Compensation Period, which were not processed at the time of this Application. 12. To the best of EY Bahrain s knowledge, information and belief formed after reasonable inquiry, this Application complies with section 330 of the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, the Guidelines adopted by the Office of the United States Trustee, and the Local Rules for the United States Bankruptcy Court for the Southern District of New York. 13. To the best of EY Bahrain s knowledge, information and belief formed after reasonable inquiry, the fees and disbursements sought fall within the Amended Guidelines and the UST Guidelines (as described in General Order M-389). 8

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11 Pg 11 of 38 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK x In re ARCAPITA BANK B.S.C.(c), et al., Debtors x Chapter 11 Case No (SHL) Jointly Administered CERTIFICATION UNDER GUIDELINES FOR FEES AND DISBURSEMENTS FOR PROFESSIONALS INRESPECT OFINTERIMAPPLICATIONOF ERNST & YOUNG FOR ALLOWANCE OF COMPENSATION FOR SERVICES RENDERED AND FOR REIMBURSEMENT OFEXPENSES AS AUDITOR FOR THE DEBTORS FOR THE PERIOD FROM MARCH 19, 2012 THROUGH OCTOBER 31, 2012 I, Essa Al-Jowder, hereby certify that 1. I am a partner with the firm of Ernst & Young ( EY Bahrain ). 2. I submit this Certification in support of the interim application (the Application ) of EY Bahrain, seeking the entry of an order, pursuant to sections 328 and 331 of title 11 of the United States Code (the Bankruptcy Code ) and Rule 2016 of the Federal Rules of Bankruptcy Procedures (the Bankruptcy Rules ) granting interim allowance of compensation for services rendered and expenses incurred as auditors for the Debtors during the above-referenced period (the Compensation Period ), and directing payment of fees and expenses that were not paid or which were previously subject to a holdback. 3. I have read the Application and, to the best of my knowledge, information and belief, formed after reasonable inquiry (a) the fees and expenses requested in the Application fall within the Amended Guidelines for Fees and Disbursements for Professionals in Southern District of New York Bankruptcy Cases (General Order M-389) and the United States Trustee Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed

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13 Pg 13 of 38 EXHIBIT A-1

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32 Pg 32 of 38 EXHIBIT A-2

33 shl Doc Filed 08/09/12 11/19/12 Entered 08/09/12 11/19/ Main Document Pg 33 3 of UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK x In re ARCAPITA BANK B.S.C.(c), et al., Debtors x Chapter 11 Case No (SHL) Jointly Administered FIRST MONTHLY STATEMENT OF ERNST & YOUNG FOR COMPENSATION AND REIMBURSEMENT OF EXPENSES AS AUDITOR TO THE DEBTORS AND DEBTORS-IN-POSSESSION FOR THE PERIOD FROM MARCH 19, 2012 THROUGH JUNE 30, 2012 Pursuant to sections 328 and 331 of title 11 of the United States Code (the Bankruptcy Code ), Rule 2016 of the Federal Rules of Bankruptcy Procedure (the Bankruptcy Rules ), and the Order Granting Debtors Motion for Order Establishing Procedures for Interim Compensation and Reimbursement of Expenses for Professionals and Committee Members [Docket No. 159] (the Interim Compensation Order ), Ernst & Young ( EY Bahrain ) hereby files and serves this monthly statement (this Statement ). By this Statement, EY Bahrain respectfully requests allowance of 100% of, and payment of 80% of, BD 163,000 (which is approximately $431,950) 1 as compensation for the period from March 19, 2012 through and including June 30, 2012 (the Compensation Period ). In support of this Statement, EY Bahrain respectfully represents as follows Background 1. On March 19, 2012 (the Petition Date ), each of the above captioned debtors (the Debtors ), other than Falcon Gas Storage Company, Inc., commenced the above-captioned 1 BD stands for Bahraini Dinars. An estimate of the equivalent U.S. dollar amounts, converted from Bahraini Dinars at the rate of BD 1 = $2.65, is set forth in this statement for illustrative purposes only. Ernst & Young is billing for its work in (and expects to be paid in) Bahraini Dinars, rather than U.S. Dollars.

34 shl Doc Filed 08/09/12 11/19/12 Entered 08/09/12 11/19/ Main Document Pg 34 4 of chapter 11 cases. On April 30, 2012, Falcon Gas Storage Company, Inc. commenced its chapter 11 case. The Debtors are operating their businesses and managing their properties as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. 2. EY Bahrain was retained to provide various audit and other assurance related services to the Debtors, nunc pro tunc to the Petition Date, by orders dated July 11, 2012 and August 6, 2012 (the Retention Orders ). The Retention Orders provide that all compensation, reimbursement of expenses and indemnification payable to EY Bahrain would be subject to review only pursuant to the standards set forth in section 328(a) of the Bankruptcy Code and shall not be subject to the standard of review set forth in section 330 of the Bankruptcy Code (except for the U.S. Trustee). The Retention Orders further provide that EY Bahrain would be required only to submit summary time records in one-half hour increments and a calculation of the total fees requested for its work in accordance with the comments made on the record during the June 26, 2012 hearing on EY Bahrain s retention with respect to the period preceding July 1, 2012, and that EY Bahrain would not be required to maintain detailed time records, to provide or conform to a schedule of hourly rates for its professionals, or to maintain or submit time records on a project category basis. Compensation Requested 3. During the Compensation Period, EY Bahrain performed the types of services set forth below. Also set forth below are the total fees incurred for each such type of service. In accordance with the Interim Compensation Order, EY Bahrain respectfully requests payment of 80% of these fees at this time. As customary in bankruptcy cases in this District, EY Bahrain will request payment of the remaining 20% of the fees set forth below in a later fee application. 2

35 shl Doc Filed 08/09/12 11/19/12 Entered 08/09/12 11/19/ Main Document Pg 35 5 of Attached hereto as Exhibit A are fee notes (i.e., invoices) from EY Bahrain pertaining to the Compensation Period. A. ESOP SPV Audit. BD 1,500 (approximately $3,975) of fees incurred during the Compensation Period. During the Compensation Period, EY Bahrain performed audit procedures with respect to certain financial statements of special purpose vehicles (SPVs) established for the Debtors employee stock purchase plans for the years ended December 31, 2004 to December 31, Specifically, during the Compensation Period, EY performed the following work related thereto Planning procedures under EY Global Audit Methodology; Planning discussion with the client regarding understanding of financial statements close process; Review of templates of the financial statements of the SPVs. The names and titles of the EY Bahrain personnel primarily providing these particular services were Mahmood AlHoori, Audit Senior and Muhammad Salman, Audit Staff. Estimated number of hours worked on this matter Compensation Period 91 during the B. NRA Limited and Arcapita Incentive Plan Limited SPV Audits. BD 7,000 (approximately $18,550) of fees incurred during the Compensation Period. During the Compensation Period, EY Bahrain performed audit procedures with respect to certain financial statements of NRA Limited and the Arcapita Incentive Plan for the years ended December 31, 1998 through December 31, Specifically, during the Compensation Period, EY performed the following work related thereto Planning procedures under EY Global Audit Methodology; Discussions with the client regarding understanding of financial statements close process; Review of templates of the financial statements of the SPVs for the years ended 2003, 2004, 2005, 2007, 2008, 2009 and 2010; Execution of audit procedures over amounts and disclosures in the financial statements, Review by Manager and Senior Director of the audit work and core planning and conclusion documents; Discussions and amendments in financial statements subsequent to reviews by Manager and Senior Director; Finalization and issuance of draft financial statements. The names and titles of the EY Bahrain personnel primarily providing these particular services were Imtiaz Ibrahim, Senior Director; Fawaz Siddiqui, Manager; Mahmood Alhoori, Audit Senior and Muhammad Salman, Audit Staff. Estimated number of hours worked on this matter Compensation Period 280 during the 3

36 shl Doc Filed 08/09/12 11/19/12 Entered 08/09/12 11/19/ Main Document Pg 36 6 of C. Audit of Special Purpose Financial Statements of SPVs. BD 6,750 (approximately $17,888) of fees incurred during the Compensation Period. During the Compensation Period, EY Bahrain performed audit procedures with respect to certain special purpose financial statements of the Debtors SPVs that were established for the purpose of raising or flowing investment capital. Specifically, during the Compensation Period, EY performed the following work related thereto Audit of the financial statements of - QRE Investments WLL for the year ended 31 December 2011; - AHQ Holding Company WLL for the year ended 31 December 2010; - AHQ Holding Company WLL for the year ended 31 December 2011; - Prologis Bahrain Holding Company WLL for the year ended 31 December 2011; - ME Ventures I WLL for the year 31 December 2011; - ME Ventures II WLL for the year ended 31 December 2011; - Makhazen Gulf Holding WLL for the year ended 31 December 2011; - Makhazen Gulf 2 Enterprises WLL for the year ended 31 December 2011; and - ARC Bahrain Acquisition WLL for the year ended 31 December Planning procedures under EY Global Audit Methodology; Discussions with the client regarding understanding of financial statements close process; Review of templates of the financial statements of the entities mentioned above; Execution of audit procedures over amounts and disclosures in the financial statements, Review by Manager and Senior Director of the audit work and core planning and conclusion documents; Discussions and amendments in financial statements subsequent to reviews by Manager and Senior Director; Finalization and issuance of draft financial statements. The names and titles of the EY Bahrain personnel primarily providing these particular services were Imtiaz Ibrahim, Senior Director; Fawaz Siddiqui, Manager; Mahmood AlHoori, Audit Senior; and Mohammed AlMarzooqi, Engagement Auditor. Estimated number of hours worked on this matter Compensation Period 224 during the 4

37 shl Doc Filed 08/09/12 11/19/12 Entered 08/09/12 11/19/ Main Document Pg 37 7 of D. Audit of the Debtors Consolidated Financial Statements. BD 140,000 (approximately $371,000) of fees incurred during the Compensation Period. During the Compensation Period, EY Bahrain performed audit and review procedures with respect to the following financial statements - Interim condensed consolidated financial statements for the half year ended 31 December 2011; - Interim condensed consolidated financial statements for the nine months ended 31 March 2012; and - Consolidated financial statements for the year ended 30 June Specifically, during the Compensation Period, EY performed the following work related thereto Understanding the service requirements, determining the scope and establishing the team; completion of preliminary engagement activities; understanding and documentation of business; determining the need to specialized skills on the audit; understanding and documenting the entity level controls as well as risk of material misstatements due to fraud; determination of planning materiality for audit; identification of significant accounts, disclosures and relevant assertions; holding team planning event meetings; identification, understanding and documentation of significant classes of transactions and related IT applications; understanding and documentation of financial statement close process; various internal discussions and meetings regarding impact of Chapter 11 filing on the financial statements of the Debtors; various discussion and meetings with the Debtors management regarding financial reporting impacts subsequent to Chapter 11 filing. The names and titles of the EY Bahrain personnel primarily providing these particular services were Essa Al-Jowder, Partner; Ashwani Siotia, Partner; Austin Rudman, Partner; Gordon Bennie, Partner; Peter Griffiths, Partner; Imtiaz Ibrahim, Senior Director; Fawaz Siddiqui, Manager; Mahmood AlHoori, Audit Senior; Faisal Fakhro, Engagement Auditor; Mustafa Qazi, Engagement Auditor; and Muhammad Salman, Audit Staff. Estimated number of hours worked on this matter Compensation Period 1,135 during the E. Consolidated Prudential Information Report for Islamic Banks. BD 5,000 (approximately $13,250) of fees incurred during the Compensation Period. During the Compensation Period, EY Bahrain performed agreed upon procedures as detailed in its engagement letter dated 22 September

38 shl Doc Filed 08/09/12 11/19/12 Entered 08/09/12 11/19/ Main Document Pg 38 8 of The names and titles of the EY Bahrain personnel primarily providing these particular services were Fawaz Siddiqui, Manager; Faisal Fakhro, Engagement Auditor. Estimated number of hours worked on this matter Compensation Period 96 during the F. Public Disclosure Regulations. BD 2,750 (approximately $7,288) of fees incurred during the Compensation Period. During the Compensation Period, EY Bahrain performed agreed upon procedures as detailed in its engagement letter dated 25 January The names and titles of the EY Bahrain personnel primarily providing these particular services were Fawaz Siddiqui, Manager; Faisal Fakhro, Engagement Auditor.. Estimated number of hours worked on this matter Compensation Period 45 during the Filing and Service of This Statement 4. In accordance with the Interim Compensation Order, notice of this Statement will be filed with the Court and served on (a) Arcapita Bank B.S.C.(c), Arcapita Building, Bahrain Bay, P.O. Box 1406, Manama, Kingdom of Bahrain (Attn Henry Thompson); (b) Gibson, Dunn & Crutcher LLP, 200 Park Avenue, New York, NY (Attn Michael A. Rosenthal, Esq., Janet M. Weiss, Esq., and Matthew K. Kelsey, Esq.); (c) the Office of the United States Trustee for the Southern District of New York, 33 Whitehall Street, 21st Floor, New York, New York (Attn Richard Morrissey, Esq.); and (d) the Official Committee of Unsecured Creditors, Milbank, Tweed, Hadley & McCloy LLP, 1 Chase Manhattan Plaza, New York, New York (Attn Dennis F. Dunne, Esq. and Evan R. Fleck, Esq.). 6